Notice of Coverage Reminder

October 1st is the deadline for Employers to send Notice of Coverage

The Affordable Care Act (ACA) requires employers across all segments to provide their employees with a written notice of the existence of public health insurance exchanges and eligibility for premium tax credits or cost sharing (if applicable for employer’s plan), regardless of whether the exchange is operated by the state or the federal government.

To help you support your clients, here are some frequently asked questions and answers about the Notice of Coverage:

Who do employers need to notify?

Employers must send a notice to all full- and part-time employees, whether or not they are on the employer’s group health plan. Employers do not have to notify employees’ dependents or others who are eligible for coverage but are not employees.

When do employees need to be notified?

Current employees must be notified by October 1, 2013. New employees hired on or after October 1, 2013, must receive this notification within 14 days of their start dates.

Is there an approved template employers should use?

The U.S. Department of Labor (DOL) created model notices that your clients can use to notify their employees.

Aetna encourages employers to speak with their own legal counsel when considering whether to use the model notices provided.

How do employers know if their plans meet the minimum value standard?

Some of the questions within the model notice ask employers to indicate if their plans meet the minimum value standard. If your client’s group health plan does not meet the minimum value standard, their employees may be able to get a tax credit by buying health insurance on a federal or state exchange.

Please note: A health plan meets the ACA’s minimum value standard if it pays for at least 60 percent of each covered employee’s health care costs.

Employers can make this determination by using the Minimum Value calculator available on the Center for Consumer Information and Insurance Oversight (CCIIO) website.